https://www.taxtmi.com/caselaws?id=39868 Expenditure incurred by a director's foreign tour to negotiate technical collaboration for manufacturing new products was treated as capital expenditure because it related to commencing a new line of business, not expanding the assessee's existing operations. The court held that similarity between the proposed products and the existing goods was insufficient to characterise the outlay as revenue in nature. Where the spending is directed to securing the foundation of a new venture and confers an enduring advantage, it assumes capital character even at a preparatory stage. The amount was therefore not allowable as revenue expenditure. en-us Wed, 02 Feb 1972 00:00:00 +0530 Tue, 20 Apr 2010 17:30:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39868 Expenditure incurred by a director's foreign tour to negotiate technical collaboration for manufacturing new products was treated as capital expenditure because it related to commencing a new line of business, not expanding the assessee's existing operations. The court held that similarity between the proposed products and the existing goods was insufficient to characterise the outlay as revenue in nature. Where the spending is directed to securing the foundation of a new venture and confers an enduring advantage, it assumes capital character even at a preparatory stage. The amount was therefore not allowable as revenue expenditure. Case-Laws Income Tax Wed, 02 Feb 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39868